PURPOSE
This study was conducted to evaluate the economic efficiency of a community-based nursing care center to help policy makers determine whether or not to invest in similar facilities.
METHODS
The subjects were 101 elderly people over 65 years who participated in a health management program from February 1 to July 31, 2007. Direct cost was estimated with center operations cost, medical cost for out-patients and pharmacy cost. Indirect cost was measured by transportation cost. Direct benefit was calculated by saved medical cost for out-patients, saved pharmacy cost, saved transportation cost, and reducing hospital charges. Indirect benefit was estimated with prevention of severe complications. Economic efficiency was evaluated by cost-benefit ratio and net benefit.
RESULTS
Operating a community-based nursing care center was found to be cost-effective. Specifically, the cost of operating the center evaluated here was estimated at 135 million won while the benefit was estimated at 187 million won. Benefit-cost ratio was 1.38.
CONCLUSION
The Community-based nursing care center that was described here could be a useful health care delivery system for reducing medical expenditures.

Citations

• Cost-Benefit Analysis of Occupational Therapy in Center for Dementia Based on Public Data
  Seung-Hyun Cho, Kyung-Yoon Kam, Sung-Yoon Bae, Nam-Hoon Cho, Hye-Won Oh, Young-Ae Yang
  Journal of Korean Society of Occupational Therapy.2018; 26(2): 99.     CrossRef
• Comparison of Benefit Estimation Models in Cost-Benefit Analysis: A Case of Chronic Hypertension Management Programs
  Ji Young Lim, Mi Ja Kim, Chang Gi Park, Jung Yun Kim
  Journal of Korean Academy of Nursing.2011; 41(6): 750.     CrossRef